This week’s first comments comes in response to the story: Landlords call for tax review as ‘disinvestment’ plans rise.
Colin Cloy said: “It is great that landlords are suffering at last, as they have had a couple of decades of enjoying great gains. They enjoyed an unlevel playing field compared with first-time buyers through advantageous tax reliefs until removed by George Osborne after a lot of lobbying from people like myself.
“House prices will fall by a least 10 per cent this year and hopefully further so first-time buyers can buy up the properties that landlords will have sell, as the buy-to-let model becomes uncompetitive particularly for the amateur landlord.
“Hopefully the sale of thousands of landlords properties will also assist the Chancellor of Exchequer balance the UK’s books through Capital Gains Tax revenue. Students can work from home like much of the rest therefore requiring much less rented accommodation.”
David Goose disagreed with Colin, noting that: “Landlords suffering will not help private tenants – over the coming months and years, landlords with mortgages will see their repayments, double or triple.
“Some examples include payments going from £575 to £1,600 or £925 to £3,000 to give two current examples on my desk. These two cases will see both landlords making a loss after tax.
“If all the landlords in this position sell up then that will cause a shortage of rental properties, rents will go up, more than they have already, to cover higher rates, and properties may fall in value if there is property flooding the market.
“I don’t hear you complaining about all the money the banks have been making. A 10 per cent fall in house prices will not help many first-time buyers that need six or seven times income and then get stung with a 5.5 per cent mortgage rate. There is a buy-to-let time bomb ticking and we need to get a plan to deal with it.”
The next comments come from: Recovering rental yields should restore BTL interest – Cox
David Goose said: “On new buy to lets, I think we need to address the problem that it is very difficult to borrow more than 50 per cent of the purchase price and with higher rates and gross rent taxation – even the 50 per cent loan to value (LTV) landlord will struggle to make any profit.
“Who will fill the space left by a decline in private landlords? Many small landlords relied on one or two properties as their pension plans – this too is now in jeopardy.”
Further comments were made in the article: The base rate is currently ‘too high’, says MPC’s Tenreyro
Dave Evans said: “If only she could persuade the rest of the committee. The inflation we are experiencing absolutely is not consumer driven, it is a result of external factors outside our control.
“In a few months, inflation will be considerably lower than the current rate. I simply do not understand the desire to steer us into a recession.”
Arron added: “The Monetary Policy Committee was slow to act. Printing hundreds of billions was guaranteed to cause the inflation that followed, so reducing base rate to 0.10 per cent exacerbated the problem. They then delayed a rise until December 2021, despite inflation starting to rise in the summer.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
